When a buyer asks for a concession instead of walking away, that's usually good news — it means they want the deal to work. But not every concession costs you the same amount, and knowing the difference is what lets you negotiate confidently instead of just saying yes to the first ask.
Price reduction vs. closing cost credit
These can look similar on paper but behave differently. A price reduction lowers the sale price outright, which affects the buyer's loan amount and your net proceeds directly. A closing cost credit keeps the sale price intact but hands the buyer cash toward their costs at closing — which can actually work in your favor if you're trying to preserve a higher sale price for comparable-sales purposes, even though the dollar impact to your net may be similar.
Repair credits vs. doing the repair yourself
When an inspection turns up an issue, buyers often ask for either a credit toward the cost or for you to complete the repair before closing. A credit is usually simpler and faster, but doing the repair yourself can sometimes cost you less than the credit a buyer requests, especially if you have a trusted contractor — worth pricing both before agreeing to either.
The right response to a concession request isn't yes or no — it's understanding what it actually costs you compared to the alternative.
How to evaluate any concession request
- Compare the real cost of the specific ask against a straight price reduction of the same amount
- Consider whether accepting keeps the deal moving toward a closing you actually want, versus re-listing and starting over
- For repair requests, get your own estimate before agreeing to the buyer's number
- Weigh the concession against how the home has been showing — a slow-moving listing has less room to push back than one with multiple interested buyers
The bottom line
A concession request isn't a sign the deal is falling apart — it's a normal part of getting to closing. The sellers who navigate it best are the ones who understand what each type actually costs before they respond, not the ones who just say yes or dig in on principle.